E-Stamp Receives Approval to Enter Final Stage of Beta Testing; IDC Study Indicates Small Businesses Prefer Hardware/Software Internet Postage Solutions

Business Wire, May 19, 1999

SAN ANTONIO--(BUSINESS WIRE)--May 19, 1999--

E-Stamp Corporation, the Internet postage pioneer, today announced it received approval from the U.S. Postal Service to enter the final stage of beta testing.

The approval falls on the heels of a recent International Data Corporation study, which ranks the hardware/software Internet postage approach as the solution of choice among small businesses. After completing the last and final step of beta, E-Stamp expects to launch its online postage service nationally this summer.

"The U.S. Postal Service is preparing for the national launch of its Information Based Indicia Program (IBIP) and is looking forward to bringing postage to people's homes and businesses through PC Postage solutions such as E-Stamp(R) Internet Postage," said Roy Gordon, Program Director for U.S. Postal Service Information Based Indicia Program.

Today, customers in test markets are using E-Stamp's Internet postage service to purchase and apply postage and are finding it to be a secure and convenient alternative to stamps and meters. Because E-Stamp Internet Postage enables customers to buy, download and store postage to their PC, they can control when and where they print stamps, without having to connect to the Internet.

IDC Study Concludes Small Business Prefer E-Stamp's Approach

A recent study by International Data Corporation, a market research firm in Framingham, Mass., concluded that a hardware/software solution, such as E-Stamp's Internet postage service, is preferred by most small business customers with a PC or Internet access over other postage services such as software-only products and low-end meters.

"Providing a solution that meets small-sized business needs will be key in winning online postage market share," said Ray Boggs, senior analyst at IDC. "E-Stamp has the right executive team, the right partnerships and now as our study proves, the right product to take the lead in the Internet postage market."

Software/hardware solutions, such as E-Stamp's Internet postage service and Internet appliance, enhance the way small businesses work and connect to the Internet. According to IDC, about 85 percent of Small Offices/Home Offices (SOHO) rely on shared data lines to connect to the Internet. Hardware/software solutions provide SOHOs with added convenience since they can print stamps whenever they want, without having to connect to the Internet.

Software-only Internet postage solutions, which require users to connect to the Internet every time they want to print a stamp are less convenient, particularly for the average SOHO customer who prepares 10-25 items a day for mailing day.

Information-Based Indicia Program

The Information Based Indicia Program (IBIP) is a U.S. Postal Service initiative committed to creating new, convenient, electronic access to postage for mailing customers. IBIP launches this opportunity with the introduction of digital postage, the Information Based Indicia (IBI) and the qualification of commercially developed products giving customers the ability to print postage using personal computers -- PC Postage products.

Through IBIP, the U.S. Postal Service delivers a higher level of convenience and security to customers with established performance and evaluation criteria for the IBI and PC Postage products For more information, see the USPS Web site at www.usps.com/ibip. To participate in E-Stamp's final phase of beta testing, sign up at www.e-stamp.com.

About E-Stamp

E-Stamp Corporation, the Internet postage pioneer, provides services that make it easy for people to purchase and use postage directly from their PC. E-Stamp's customer-centric approach is interwoven into every aspect of the company -- from a solution that does not require the inconvenience of a persistent Internet connection to impeccable customer service. The privately- held company has established partnerships with industry leaders including Microsoft, Compaq, Yahoo!, America Online, Avery Dennison and Francotyp Postalia.

Headquartered in San Mateo, Calif., the company can be reached at 1-800-4-E-STAMP or at 650/554-8454. To receive information via email, address your request to info@e-stamp.com, or access the company's Web site, e-stamp.com(TM), to sign up for beta testing.

Note to Editors: E-Stamp, estamp, the e-stamp logo, and e-stamp.com are either trademarks or registered trademarks of E-Stamp Corporation. Other product and company names mentioned herein may be the trademarks of their respective owners.